Conversations with seven Boston-area adult basic education (ABE) program coordinators revealed the severe adverse effects of Massachusetts' new restrictive welfare reform law on literacy education programs for the poor. The new law limits cash assistance to 2 years for most welfare recipients and requires most recipients whose youngest child is school age to do at least 20 hours per week of paid or unpaid (community service) work. As a result, the number of welfare recipients attending adult basic education programs has fallen in recent months. Education is no longer encouraged--and is often actively discouraged--for recipients of public assistance. The number of classes and slots at ABE programs funded by the state welfare department to provide educational services to clients has fallen. Child-care problems, paperwork problems, lack of uniformity in applying the provisions of the law, and absence of coordination among various social service systems contribute to push students out of education programs and into low-wage jobs. The new law has severely damaged ABE programs by loss of students and loss of funding. (KC)